Auditchain - Decentralized Continuous Audit and Reporting Protocol Ecosystem™


An audit is, simply speaking, an opinion based on inspection of the operational and financial state of a company. Audits are needed to express to shareholders or people with an interest in the company, that financially speaking, the company is telling the truth “in all material respects”. This means that the information that the auditor expresses an opinion on “presents fairly” in all material respects, the financial and operating condition of the enterprise.

That statement, as stated in every annual report carries a high degree of subjectivity and is conditional upon a lot of other things, such as the management’s ability to maintain control over disclosure controls. Auditors are tasked with expressing a set of opinions, not facts. However, there are three critical flaws to this system:

1) the Auditor is giving an opinion, which is subject to bias and can be influenced by the company.
2) the evidence that is provided to the Auditor comes from the company itself, usually once a quarter an on an annual basis. This gives the company enough time to alter the evidence in their favor.
3) It is not the auditors job to specifically detect fraud. That is a different kind of an audit.

The most obvious reason is to maintain integrity. In 2018 alone, fraud resulted in the theft of over $7 Billion according to the ACFE. You can read the most recent Report to the Nations.

However, there is another important reason to change this process. As the world has become more connected and services are available 24/7, the financial state of companies should also be available 24/7 for investors and shareholders. Investors, hedge funds, VCs and fund managers should be able to check the status of their investment in a company or entity at any time, whether the company raised their funds through ICO, IEO or in traditional ways. Digital assets need real time assurance and disclosure! its up to exchanges to require it!

The Solution - Auditchain

The DCARPE Assurance and Disclosure Platform will enable continuous enterprise state machine and real time financial performance external validation by a network of CPAs and Chartered Accountants for issuers of digital assets. The DCARPE Explorer will render real time financial statement data as well as audit analytics in REAL TIME. The DCARPE Explorer will also offer public subscriptions to deeper financial detail and audit analytics as well as the ability to access tools to build dynamically updating thesis-based reports that ultimately have the potential to mechanize the foresight of oncoming risk.

This solves the two flaws in the current auditing system:

1) The auditors running the nodes are not connected to the company. They are truly independent.
2) The company must adapt their systems to provide cryptographically verifiable data in real time, which removes the time lapse and attack vectors from data delivery to the external validating nodes.



Staking Incentives and Rewards

All external validators and service providers such as software providers are required to purchase and stake AUDT. Enterprises stake AUDT to pay for services and assurance. Software providers that provide accounting and human resource software must stake AUDT. They get paid AUDT for providing the software to enterprise users. Auditors must also stake AUDT. They also get paid AUDT for providing attestations on each data block. They also get charged for not providing assurance when it is appropriate. This promotes and enforces a healthy gamified environment.

Auditchain is secured through Proof of Stake (PoS) consensus mechanism. 85% of the rewards are distributed to the external validators and 15% is distributed to Auditchain and DCARPE Alliance, its affiliate for development of the network and education.

Please refer to the whitepaper for more technical details regarding “Network and Consensus Governance”

DCARPE Alliance

The DCARPE™ Alliance is a global coalition of members of the accounting, audit, financial reporting, legal, blockchain, investment and regulatory community, (the “Alliance”). The purpose of the Alliance is to provide education, drive technology innovation and open source engineering, and promote the adoption of continuous audit and real time financial reporting using the DCARPE™ Assurance and Disclosure Protocol.

Auditchain is the founding member of the Alliance and is leading the development of DCAPRE with other members of the Alliance in the technical category. The DCARPE Assurance and Disclosure Protocol is the world’s first decentralized continuous audit and financial reporting protocol ecosystem for digital asset assurance and disclosure.

The Alliance is segmented in four categories;

•   Financial Reporting & Assurance – CPAs, Chartered Accountants Individual and Corporate Experts in Active Practice
•   Technical – Developers and Third-Party Software Providers
•   Legal and Regulatory - Law Firms, Regulators, Academics
•   Gatekeepers – Digital Asset Exchanges, Securitization and Tokenization Platforms

Members in the assurance and financial reporting category of the Alliance will act as service providers in the DCARPE ecosystem. The Alliance members include Certified Public Accountants and Chartered Accountants who are system and organizational control auditors as well as financial statement auditors. They will operate external validating (“audit”) nodes on the network. This is the Assurance and Reporting category.

Members in the technical category of the Alliance are developers, enterprise software, technology and systems integration will act as service providers by adapting and integrating instances of their software into DCARPE for consumption and utilization by enterprises. This is the technical membership category.

Members from the legal, regulatory and academic community provide thought leadership on the benefits of continuous assurance and real time financial disclosure as well as how it can shape the evolution of existing legislature. This category represents the thought leadership category.

Members who provide digital asset origination, distribution, listing and trading services are the gatekeepers. They are tokenization and securitization platforms as well as digital asset exchanges.

There are currently 50 members of the DCARPE™ Alliance. The contributing members are companies who are global leaders in providing financial reporting software products and related services, XBRL software, accounting software APIs, Blockchain, artificial intelligence and machine learning software and consulting services.

The remaining members are CPAs, Chartered Accountants and academic thought leaders in accounting, audit and financial reporting.

Why Auditchian Adoption?

Digital Assets Need Real Time Transparency. It’s Up to Exchanges to Require It. Unless digital asset exchanges begin to demonstrate improvements in listing standards, risk controls and transparency, regulatory compliance and mass adoption will be extremely difficult.

Traditional exchanges such as Deutsche Borse, NYSE, NASDAQ and SIX have strict listing standards that require all assets to submit to audit and review. Every traditional exchange also submits to audit and review. Failure to report financial results on time is cause for regulatory enforcement action and “delisting”.

We believe that digital asset exchanges have another chance to remain innovative and set an example for the global financial system by creating a new listing category reserved for digital asset listings and IEOs that agree to provide real time financial transparency subject to continuous external validation assurance by adopting DCARPE.

Auditchain is partnering with digital asset exchanges who will act as early adopters to integrate DCARPE via API into their digital asset exchange listing and launchpad platforms. It’s a strategic move by digital asset exchanges to collaborate and demonstrate innovation and advancements in disclosure and transparency. It is also the key to avoid being shut down by governments and regulators for failing to protect investors and otherwise failing to promote and enforce, market integrity and full and fair disclosure.

Why Blockchain?

Blockchain in its essence is an accounting system. It is the best use case for a blockchain. It is a distributed ledger of records that are protected by cryptographic hashes, which cannot be changed once it is on the blockchain. This makes it perfectly suited for transparent, immutable financial records.

Competitors

Based on much research, we believe we have a first mover advantage. We also believe that based on much research, there are no other projects that are building a decentralized continuous audit and financial reporting protocol.

Token details

Token: AUDT
Type: Utility
IEO: launchpad Exmarkets, Launchpad
PreICO Price: 1 AUDT = 0.10 USD
Price: 1 AUDT = 0.2 USD
Platform: Ethereum
Accepting: BTC, ETH, USDC, EUR
Minimum investment: 100 USD
Soft cap: 200,000 USD
Hard cap: 20,000,000 USD
Raised: $2,000,000
Country: Switzerland
Whitelist/KYC: KYC
Restricted areas: United States of America, Afghanistan, Cuba, Iran, Iraq, Libya, N. Korea, Syria, Myanmar, Haiti, Liberia, Rwanda, Somalia, Sudan, or the Democratic Republic of the Congo

Token distribution: 
40% - token sale
18% - air drop
10,4% - advisors
10,3% - team
10,3% - partnerships
6% - early contributors and adopters
5% - bounties

The Team


Roadmap




More Informations

Website: https://auditchain.com/
ANN: https://bitcointalk.org/index.php?topic=5152521.0
Telegram: https://t.me/Auditchain_Community
Facebook: https://www.facebook.com/auditchain/
Twitter: https://twitter.com/auditchain


Author: Oteemit
Bitcointalk: https://bitcointalk.org/index.php?action=profile;u=2626538
Tags: new-ico , platform
25/07/2019

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